VICE FUND: APRIL 2023 – COMMENTARY LETTER
The Vice Fund ended the month of April with a return of +2.98%.
Market Review
In April, equity markets were a mixed bag. Large-cap stock indices were positive, while small-cap stock indices were negative. In general, equity earnings beat already lowered consensus estimates. It was the best earnings season compared to analyst consensus since Q4 2021. But full-year guidance from these companies was murky, with negative linearity in Q1.
Economic data provided mixed signals over the month. Q1 Gross Domestic Product (GDP) came in below consensus, but personal consumption expenditure grew over the quarter. The consumer is not dead, which may bode well in the short term. However, hot April inflation reports indicate the Federal Reserve will keep rates higher for longer. May offers more inflation data points for the Federal Reserve to ponder with the release of jobs numbers, GDP, and CPI.
We believe the primary source of volatility looking forward is the debt ceiling debate deadlock. If lawmakers cannot break this deadlock, an unprecedented U.S. debt default may occur in early June. Both parties are playing a dangerous game of brinksmanship that has historically resolved a week or two before the deadline. As of this writing, we are still in a debt ceiling deadlock with the potential for large volatility spikes as we get closer to the end of the month.
The Vice Fund benefited from the rally in large-cap stocks versus small-cap stocks in the month. In general, the Vice fund invests in large to mid-cap stocks that pay dividends that overperform small and micro caps in the month.
Sincerely yours,
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.
Standardized performance as of (3/31/2023) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | 9.05% | 0.74% | 5.94% | 8.06% |
| MSCI World Index | -6.96% | 7.46% | 8.62% | 8.51% |
Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense 1.64% and 1.49%. Contractual fee waivers through 07/31/2023.
DEFINITIONS:
The MSCI All Country World Index Total Return (“MSCI ACWI TR”) captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.
SYMBOL: VICEX
